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Social Networks for Innovation

Three sections explain how your company can use social networking to change the economics of innovation and competitiveness: a) how Web 2.0 changes the context of corporate innovation, b) social networks in innovation, c) practice, how to use social networks for innovation

7.
Environment21: The Knowledge Economy
Copyrighted
material
• Social networks put everyone online
– Low barrier to entry - social networks
create context
– Relationships discoverable online
• Low cost to find, build and manage 2 billion
relationships
– People are smarter people will be
• They have more specific social
interactions
online by
• People can mobilize and build
knowledge quickly 2011
• Global is the default
– Emerging markets online by default
– Emerging markets are where the
growth is
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 7

8.
Environment21: Big Idea
Copyrighted
material
Social networks transform
the economics of
innovation—like the Internet
created information and
transactions on demand
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 8

9.
Social Network Innovation:
Copyrighted Procter & Gamble
material
Marketing 2.0 highlights
“The worst mistake is not
• Innovation is a core strategy at P&G
– How consumers use products in their lives letting go of control; you
– Marketing adds value to products
• P&G sources 50% of innovation from outside; have to let people learn,
– Crowdsource (chemical) engineering
and innovation is a
– Intend to do it with marketing
• Marketing 2.0 key to innovation different learning process.
– Gen Y works this way; they are key to demand
– It is contagious; P&G’s blogs began on an old You can approach it this
$1,500 server; now they have 200 very active
Key insights way if you chunk
• P&G is very data and ROI driven; however: investments small.”
– ROI is very appropriate for stable processes
– Innovation is a different kind of process, so don’t
measure it like a manufacturing process – Stan Joosta, Innovation
• Make innovation investments in small chunks Manager, P&G
• People are making negative comments anyway;
you might as well be in contact with it
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 9

14.
Social Network Innovation: Big Idea
Copyrighted
material
People hold the key to
innovation and profitability,
but you have to know how
to engage them
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 14

15.
Practice: Web 2.0 Principles
Copyrighted
material
1
• People giving suggestions in a transparent
environment work much harder than in
closed settings
• Even if 0.01% of your customers want to
participate, that’s a lot when they are online
2
3
- and they self-select
• All customers will give you more credibility
4
when they see the community, even if they
don’t participate
5
• Manage the process, make it rewarding
• Tell people how you will act on their ideas,
why it’s important
• Show them how they are making a
difference
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 15

20.
Practice: Tapping Emergent Global Human Capital
Copyrighted
material
Where you fit in What others
the ecosystem can contribute
Understanding
Core Competency
is the key to success
with open innovation
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 20

21.
Practice: Big Idea
Copyrighted
material
Experience is the lingua
franca of the Knowledge
Economy, not products or
services—let it be your
focus, it leads to profits
10/27/09 Scaling Innovation with Social Networks | Business Innovation Conference 2009 21